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Sources of Monopoly in Blow

In this clip, Johnny Depp is realizing that there is a undeveloped market for marijuana on the east coast. He believes he has a superior product and will be able to dominant the market on the east coast. Since his product is illegal, he quickly develops a monopoly. When economists oppose the drug prohibition, the reason they give is that when a market is made illegal, people who have a comparative advantage in breaking the law will dominate the market. In the black market, contracts are enforced with guns, not judges. The originator of these videos will take no official position on drug prohibition.

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